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Cash Flows and Financial Statements at Sunset Boards, Inc. Stunset Boards, Inc, is a small company that manufactures and sells surfboards in Malibe. Tad Marks, the foander of the contpurss, is in charge of the desizan and sale of the sarfboards, bat his background is ia sarfing, not besiness. As a resuln, the company's financul recoeds are not well maintained. The initial investment in Sanset Boards was provided by Tad and his friends and family. Because the initial investmeat was relarively small, and the company has made surfooards only for its con store, the imestors haven't required detailed financial statemeats from Tat But thanks to word of mouth among professional surfers. sales lune picked up recently, and Tad is considering a major expansion. His plans include opening another surfboard store in Hawaii, as well as supplying his "sticks" (surfer lingo for boards) to other sellers. Tad's expansion plans require a signiffeast investment. which he plans to finance with a conbeination of additional funds from outsiders plus some noney borrowed from banks. Naturally, the new investors and crednors require more organized and detailed financial statements than Tad has pretiously prepared. At the urging of his investors. Tad has hired financial analyst Christina Jennings to etalate the performance of the compang over the past year. After rooting through old bank statements, sales receipts, tax returns, and other recoeds. Christisa has assembled the folloming information: Sonset Boards currently pays out 40 percent of net income as dividends to Tad and the celser oripinal itrestons, and it has a 21 persent tax rate. Yoe are Christina's assistant, and sbe has asked you to prepare the following 1. An income statement for 2020 and 2021 . 2. A balance sheet for 2020 and 2021 . 3. Operating cash flow for each year. 4. Cash flow from assets for 2021. 5. Cash flow to creditors foc 2021. 6. Cash flow to stockholders for 2021 . QUESTIONS 1. How would you descrite Sunset Boards's cash flows for 2021 ? Wrine a brief discuasion. 2. In lieht of your discussion in the previons gaestion, what do yoa think about Tad's expansion plans? Cash Flows and Financial Statements at Sunset Boards, Inc. Stunset Boards, Inc, is a small company that manufactures and sells surfboards in Malibe. Tad Marks, the foander of the contpurss, is in charge of the desizan and sale of the sarfboards, bat his background is ia sarfing, not besiness. As a resuln, the company's financul recoeds are not well maintained. The initial investment in Sanset Boards was provided by Tad and his friends and family. Because the initial investmeat was relarively small, and the company has made surfooards only for its con store, the imestors haven't required detailed financial statemeats from Tat But thanks to word of mouth among professional surfers. sales lune picked up recently, and Tad is considering a major expansion. His plans include opening another surfboard store in Hawaii, as well as supplying his "sticks" (surfer lingo for boards) to other sellers. Tad's expansion plans require a signiffeast investment. which he plans to finance with a conbeination of additional funds from outsiders plus some noney borrowed from banks. Naturally, the new investors and crednors require more organized and detailed financial statements than Tad has pretiously prepared. At the urging of his investors. Tad has hired financial analyst Christina Jennings to etalate the performance of the compang over the past year. After rooting through old bank statements, sales receipts, tax returns, and other recoeds. Christisa has assembled the folloming information: Sonset Boards currently pays out 40 percent of net income as dividends to Tad and the celser oripinal itrestons, and it has a 21 persent tax rate. Yoe are Christina's assistant, and sbe has asked you to prepare the following 1. An income statement for 2020 and 2021 . 2. A balance sheet for 2020 and 2021 . 3. Operating cash flow for each year. 4. Cash flow from assets for 2021. 5. Cash flow to creditors foc 2021. 6. Cash flow to stockholders for 2021 . QUESTIONS 1. How would you descrite Sunset Boards's cash flows for 2021 ? Wrine a brief discuasion. 2. In lieht of your discussion in the previons gaestion, what do yoa think about Tad's expansion plans
